Tuesday 18 January 2011 04.19 EST
First published on Tuesday 18 January 2011 04.19 EST

Ministers are expected to announce today that they have decided to restrict a ban on cut-price sales of alcohol, enabling supermarkets to continue selling beer at 38p a can and wine at just over £2 a bottle.

This morning Professor Ian Gilmore, chair of the Alcohol Health Alliance UK, said the move – which will keep the ban to those drink sales below the rate of duty and VAT – "will have no effect at all on the health of this nation". Publicans and fellow health campaigners have claimed that alcohol will still be available at "pocket-money prices".

Ministers, however, believe that the measures will halt the worst cases of deep discounting by supermarkets and have the effect of setting the lowest level at which different strengths of alcohol can be sold. They believe the move will prevent supermarkets and others selling a litre bottle of vodka for less than £10.71 or a 440ml can of lager for less than 38p.

They hope to rebut accusations of a fresh coalition climbdown by stressing that the move is an important first step in delivering the government's commitment to banning the sale of cheap drink.

"It's a step in the right direction, but I have to say its an extremely small step. It'll have no impact whatsoever on the vast majority of cheap drinks sold, for example, in supermarkets," Gilmore told BBC Radio 4's Today programme.

He added: "At least it shows that the government accepts cheap drink is the main driver of the health harm we're seeing and will perhaps will manage to ease it up in the right direction where it might make a practical difference."

Gilmore said he accepted pricing was not the only factor in reducing excess alcohol consumption, but said: "To bring in a measure that we know in practice will have no effect at all on the health of this nation I think is disappointing."

The government hopes the decision will send a signal to the supermarkets and the public that they take the issue seriously without putting an unlimited burden on industry. They believe the ban will be easily enforceable in an area where EU competition law rules out a minimum price agreement.

But health campaigners point out that only a very small number of drinks or promotions will be affected by the ban and it will still be possible to buy a bottle of wine for £2.03 and a can of lager for 38p.

Jonathan Mail of Camra, the drinkers' group, said: "The decision means pubs will continue to close as they are undercut by supermarkets selling cans of beer at pocket-money prices. We think the ban will have negligible impact as supermarkets sell only a tiny minority of beer below duty plus VAT.

"We think the decision is a betrayal of the government's promise to ban below-cost alcohol sales. It will allow supermarkets to continue to sell alcohol below cost unhindered."

Don Shenker of the health campaign Alcohol Concern said: "This measure will not go any way towards resolving this country's binge drinking problem. Duty is so low in the UK that it will still be possible to sell very cheap alcohol and be within the law. The government needs to look again at a minimum price per unit of alcohol. That is the only evidence based approach that will end cheap discounts once and for all."

The coalition promised to ban the sale of cut-price alcohol in the face of increasing health concerns and worries about the rise of violence among drunk teenagers. In opposition, the Conservatives promised to "call time on drinks that fuel antisocial behaviour".

In 2009, it was revealed that the main supermarkets were selling beer more cheaply than mineral water at 5p per 100ml, triggering claims that such rock-bottom prices were fuelling binge drinking.

Brigid Simmons, of the British Pub and Beer Association, told MPs last week that such a ban would not lead to any change in the way supermarkets sold alcohol. Campaigners argue that the definition of "below-cost" should have also included the production and distribution costs. They complain that the definition was written by the Wine and Spirits Association.

Former chief medical officer Sir Liam Donaldson has argued for stronger action including a minimum unit price of 50p, saying it could save 3,400 lives a year.

This approach, which has been endorsed by Nice, the official public health watchdog, would put the minimum price of a pint of beer closer to £1-£1.50.